Case No. 08-15214-RAG.United States Bankruptcy Court, D. Maryland, (Baltimore Division).
July 17, 2009
STIPULATION AND ORDER DENYING MOTION BY CHASE HOME FINANCE LLC, AS SERVICER FOR U.S. BANK, NATIONAL ASSOCIATION, TO COMPEL DISPOSITION OF NON-ESTATE SALE PROCEEDS PURSUANT TO 11 U.S.C. § 725
ROBERT GORDON, Bankruptcy Judge
Upon consideration of the Motion by Chase Home Finance, LLC, as servicer for U.S. Bank, National Association, to Compel Disposition of Non-Estate Sale Proceeds Pursuant to
Page 2
11 U.S.C. § 725 (the “Motion”); the responses to the Motion filed by Sid McNairy and David E. Rice, the Chapter 7 Trustee in the above-captioned case (the “Trustee”) and the Trustee’s objection to Proof of Claim no. 6 filed by Chase (the “Objection”) [Docket No. 39], and Proof of Claim No. 6 having been amended by Claim No. 6-2 filed on May 27, 2009 (the “Amended Claim”) and this Court having heard and considered the oral arguments by the parties at the June 23, 2009 hearing on the Motion, and having considered the agreement of the parties evidenced by the signature of their counsel contained below, it is by the United States Bankruptcy Court for the District of Maryland, hereby
ORDERED, that the Motion is DENIED without prejudice; and it is further
ORDERED, that Chase Home Finance, LLC (“Chase”), as servicer for U.S. Bank, National Association may prosecute, against Sid McNairy only, the Complaint for Declaratory Judgment filed by Chase in the Circuit Court for Baltimore City, Maryland, styled as Chase Home Finance, LLC v. Heather Keller-McNairy and Sid McNairy, Case No. 24-C-08-001462 (the “Declaratory Judgment Suit”); and it is further
ORDERED, that the Trustee hereby voluntarily withdraws the Objection without prejudice and his right to object to the Amended Claim is hereby fully preserved; and it is further
ORDERED, that the automatic stay imposed by § 362 of the Bankruptcy Code is hereby modified so that Chase may proceed in the Declaratory Judgment Suit against Sid McNairy only; and it is further
ORDERED, that except as modified in preceding paragraph, the automatic stay imposed by § 362 of the Bankruptcy Code shall otherwise remain in full force and effect in the captioned bankruptcy case and nothing in this Stipulation and Order or otherwise shall allow the Declaratory Judgment Suit to proceed with respect to (i) Heather McNairy (the “Debtor”), (ii) the bankruptcy
Page 3
estate of the Debtor (the “Estate”), (iii) the Trustee, (iv) any property of the Debtor or the Estate including, without limitation, any interest held in the real property located at 2529 Foster Avenue, Baltimore, Maryland 21224 (the “Property”), or (iv) the Debtor’s or the Estate’s interest in the proceeds of sale of the Property; and it is further
ORDERED, that nothing in this Stipulation and Order shall constitute a waiver of the jurisdiction of this Court to determine the extent of the Estate’s interest in the Property and the proceeds of its sale, which determination shall be made solely by this Court; and it is further,
ORDERED, that the Chapter 7 Trustee shall continue to hold proceeds from the sale of the Property pending further order of this Court.
Page 4
SO ORDERED.
Patricia A. Borenstein, Fed. Bar No.: 27668, Miles Stockbridge P.C., Baltimore, MD, Attorneys for Chase Home Finance, LLC.
FrederickW. H. Carter, Fed. Bar No.: 26167, Venable LLP, Baltimore, Maryland, Attorneys for Chapter 7 Trus.
Mark F. Scurti, Fed. Bar No.: 09475, Hodes, Pessin Katz, P.A., Towson, Maryland, Attorneys for Sid McNairy.